Non-Bank Entities can soon set up ATMs

The Central Bank will allow non-Bank entities to set up automated teller machines [ATMs] and point of sale [POS] terminals as it ramps up efforts to promote card-based transactions across the country. The move will help people in distant parts of the country to settle their transactions without going to Banks as some private companies already have plans to install a large number of ATMs according to a Bangladesh Bank official. At present, only Banks are allowed to set up ATM and POS, but they are now showing little interest in expanding the facilities given the high maintenance cost, additional manpower and high security measures. The Central Bank has been working on the issue for long and has almost completed all relevant work to roll out the service. A guideline will be issued within the next couple of months, the BB official added. The intended companies, which will set up ATMs and POS, will have to take licenses from the Central Bank to act as a payment system provider [PSO]. The PSOs will have to deposit Tk 50 lakh with the Central Bank.

Source: https://www.thedailystar.net/business/news/non-bank-entities-can-soon-set-atms-1797208

Beef up Local Govt to boost Service Delivery

Bangladesh has made remarkable progress in human and infrastructure development, yet access to quality education, healthcare, safe drinking water and sanitation is still a far cry, according to a top World Bank official. There are several factors that hinder progress in the delivery of basic services. One factor is the absence of a well-functioning local government institution in Bangladesh, according to WB Country Director for Bangladesh and Bhutan Mercy Miyang Tembon. The South Asian Network on Economic Modelling [Sanem] and The World Bank organized the two-day event on “Subnational finance and local service delivery”. Planning Minister MA Mannan inaugurated the event where researchers from India, Nepal, Sri Lanka and Pakistan were also present. Bangladesh now has an administratively decentralized system with various levels of elected local government institutions [LGIs] thanks to the series of legal reforms brought in recent years. Statistics also show that Bangladesh indeed is among the least decentralized countries among the world. Share of LGI expenses is 7 percent of the total national budget.

Source: https://www.thedailystar.net/business/news/beef-local-govt-boost-service-delivery-1797205

Trade War helps raise Apparel Export to US

The US-China trade war is directly benefitting Bangladeshi exporters, with garment shipments to the US increasing over 3 percent this year compared to that last year according to the leaders of Bangladesh Garment Buying House Association yesterday. Last year the shipments to Bangladesh’s largest export destination decreased 2 percent year-on-year, said the association’s President Kazi Iftequer Hossain at a press conference at its office in Dhaka. Though Bangladesh will continue to benefit from the trade skirmishes, the biggest gainer is Vietnam which has received more work orders. The biggest challenges are fast adoption of automation and exploration of marketing avenues alongside meeting shortages of skilled mid-level manpower. Some Bangladeshi garment exporters are already in business with Amazon, a US-based global e-commerce giant, and industry insiders say marketing through one of the world’s largest online retailers leads to lesser dependence on human resources.

Source: https://www.thedailystar.net/business/news/trade-war-helps-raise-apparel-export-us-1797202